Amgen, Inc. (AMGN), Onyx Pharmaceuticals, Inc. (ONXX): Monday’s Best Stocks

Page 1 of 2

Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.

For the fourth-straight week it appears that the broad-based S&P 500 (SNPINDEX:^GSPC) is starting off on shaky ground. The culprits today appear to be weak U.S. economic data and a report from Dow Jones that has reignited U.S. debt-ceiling fears.

Amgen, Inc. (NASDAQ:AMGN)

While not often viewed as a huge report, the July U.S. durable-goods report (a measure of big purchase items like cars and appliances) was so bad — a drop of 7.3% from the previous month — that it certainly caught investors’ attention. To abate some of this negativity, a 52% drop in civilian aircraft orders was a big component to these weak results, but it still could point to weak third-quarter GDP growth if spending on big-ticket items is beginning to dry up.

The other concern came from Dow Jones, which reported that the U.S. Treasury will reach its current debt limit by mid-October. And we all know what that means, right? You bet: More Congressional bickering! The past few debt-limit crises have come down to the wire, with both parties kicking the can further down the road instead of working out a solution. This is one of those broad-topic issues that has the potential to affect all sectors if nothing is worked out.

By day’s end, the S&P 500 had digested all of this negative information and given up all of its gains, ending lower by 6.72 points (-0.40%) to close at 1,656.78.

As should come as no surprise, biotechnology giant Amgen, Inc. (NASDAQ:AMGN) led the S&P 500 higher, gaining 7.7% after announcing the $10.4 billion ($125/share) all-cash purchase of Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX). With  Amgen, Inc. (NASDAQ:AMGN)’s pipeline aging, this deal gives it a fresh line of rapidly growing cancer-fighting compounds, including multiple myeloma drug Kyprolis, which could fetch $3 billion in annual sales at its peak. Based on my initial estimates that Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) could be worth as much as $145 a share, I think Amgen, Inc. (NASDAQ:AMGN) scored a nice value on Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) and would definitely suggest giving Amgen, Inc. (NASDAQ:AMGN) another look here even after its recent rally.

Logistics company C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW), a new name to the best-performers list, added 2.9% today after announcing plans to increase its buyback authorization.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!